Correlation Between IShares Fundamental and PHN Multi
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By analyzing existing cross correlation between iShares Fundamental Hedged and PHN Multi Style All Cap, you can compare the effects of market volatilities on IShares Fundamental and PHN Multi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in IShares Fundamental with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Fundamental and PHN Multi.
Diversification Opportunities for IShares Fundamental and PHN Multi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and PHN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding iShares Fundamental Hedged and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and IShares Fundamental is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iShares Fundamental Hedged are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of IShares Fundamental i.e., IShares Fundamental and PHN Multi go up and down completely randomly.
Pair Corralation between IShares Fundamental and PHN Multi
Assuming the 90 days trading horizon IShares Fundamental is expected to generate 1.23 times less return on investment than PHN Multi. But when comparing it to its historical volatility, iShares Fundamental Hedged is 1.07 times less risky than PHN Multi. It trades about 0.12 of its potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,377 in PHN Multi Style All Cap on September 1, 2024 and sell it today you would earn a total of 485.00 from holding PHN Multi Style All Cap or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
iShares Fundamental Hedged vs. PHN Multi Style All Cap
Performance |
| Timeline |
| iShares Fundamental |
| PHN Multi Style |
IShares Fundamental and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Fundamental and PHN Multi
The main advantage of trading using opposite IShares Fundamental and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Fundamental position performs unexpectedly, PHN Multi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PHN Multi will offset losses from the drop in PHN Multi's long position.| IShares Fundamental vs. Brompton Global Dividend | IShares Fundamental vs. Global Healthcare Income | IShares Fundamental vs. Tech Leaders Income | IShares Fundamental vs. Brompton North American |
| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Global Healthcare Income | PHN Multi vs. CI Global Alpha |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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